Hospitals, physicians are waiting for federal subsidies to offset costs of

adopting IT

CHICAGO, Feb. 25 /PRNewswire/ -- Spending on information technology by
the nation's hospitals and physicians is expected to rise only slightly
this year as many healthcare providers appear to be holding out for federal
financial assistance before buying the latest IT systems for their
facilities. That's according to Modern Healthcare's 18th Annual Survey of
Executive Opinions on Key Information Technology Issues.

"The survey results support what we hear anecdotally from healthcare
providers," said Modern Healthcare Editor David Burda. "But if they're
waiting for the federal government to act, they may be waiting a long time
given the government's other federal budget priorities."

Some 145 senior-level healthcare executives from hospitals, healthcare
systems, physician practices and other provider organizations responded to
the survey, which was conducted from Nov. 19, 2007, through Jan. 21, 2008.

About 18% of the executives said their healthcare organizations will
spend 2.6% to 3% of their total operating budget on information technology
this year, which was the median range of spending in this year's survey. By
comparison, last year's median spending range was slightly lower -- 2.1% to
2.5% -- which was cited by about 16% of last year's respondents.

Healthcare providers' interest in electronic health record systems is
on the rise, the survey found. About 58% of this year's respondents cited
the adoption of an EHR system as one of their top three IT priorities this
year compared with about 54% last year.

But most of the executives surveyed felt that the federal government
needs to provide money to healthcare organizations in order to meet
President Bush's goal of having most Americans have access to an EHR by
2014. About 86% of the surveyed executives said the government should
subsidize the cost of EHR systems at hospitals, while about 73% said the
feds should do the same for physician practices.

The complete results of the survey can be found in the Feb. 25 issue of
Modern Healthcare and on Modern Healthcare Online at
http://www.modernhealthcare.com.

For more information on Modern Healthcare's 18th Annual Survey of
Executive Opinions on Key Information Technology Issues, contact Editor
David Burda at 312-649-5439 or dburda@crain.com.

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